Research Article

Profitability vs. Stability: The Choice of Trading Strategies in a Capacity Sharing Supply Chain

Table 1

List of notations.

NotationDefinition

Potential market size
Demand sensitivity coefficient
Production cost of the capacity provider and the capacity requestor
Adjustment speed
Capacity quantity owned by the capacity requestor
Market-clearing price
Total quantity required by the capacity requestor
Capacity quantity ordered by the capacity requestor
Unit capacity-transfer price
Unit service charge, decision variable of the platform operator
Customer surplus utility
Profit of the capacity requestor
Profit of the capacity provider
Profit of the platform operator